Foreign holdings of Malaysian bonds rise to RM325.5 billion
MBSB Research estimated that foreign investors held 21 per cent of outstanding government debt in October.
Foreign investors increased their holdings of Malaysian bonds by RM7.2 billion in October, taking the outstanding value to RM325.5 billion, according to MBSB Research’s monthly fixed income review.
The research firm said holdings reached a record during October’s final week after a sharp increase. It estimated that foreign ownership accounted for 21 per cent of total outstanding government debt, a slight rise.
Malaysian government securities (MGS) yields ended the month lower across all maturities, with longer-dated securities recording most of the decline. The 10-year MGS yield ranged between 3.799 per cent and 4.028 per cent during October.
MBSB Research expects MGS yields to follow US Treasury yields over the short to medium term. It said that outlook remained subject to inflation risks, conflicts in the Middle East and the possibility of another rate increase by the US Federal Open Market Committee. The firm said investors anticipated a 25 basis points increase at the December meeting.
